REG - Inspecs Group PLC - Interim Results
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RNS Number : 7655Z Inspecs Group PLC 18 September 2025
18 September 2025
INSPECS Group plc
("INSPECS", "the Company" or "the Group")
Interim Results
INSPECS Group plc, a leading designer, manufacturer, and distributor of
eyewear (sunglasses, optical frames and low vision products) presents its
unaudited interim results for the six months ended 30 June 2025.
The financial review results below are reported with Norville classified as a
discontinued operation. For the six months to 30 June 2025, Norville generated
revenue of £2.4m (H1 2024: £2.4m) and an Underlying EBITDA loss of £0.7m
(H1 June 2024: £0.9m loss).
Financial review:
· Delivered revenue in the first half of £97.6m (H1 2024(1): £100.6m)
· On a constant exchange rates basis(2), revenue was £99.3m (H1
2024(1): £100.6m), a decrease of 1.3%
· Gross profit margin decreased 80 basis points to 51.8% (H1 2024(1):
52.6%)
· Operating expenses of £47.8m down by 1.2% (H1 2024(1): £48.4m)
· Underlying EBITDA(3) reduced to £9.0m (H1 2024(1): £11.0m) following
a decrease in revenue in the period
· Diluted Underlying EPS(4) of 2.08p (H1 2024(1): 3.94p)
· Profit before tax of £2.4m (H1 2024(1): £2.6m)
· Continued improvement in working capital, reduced by £3.3m (H1 2024:
reduced by £2.4m)
· Cash generated from operations £11.2m (H1 2024(1): £12.5m)
· Net debt excluding leases(5) increased by £0.7m in the six months to 30
June 2025 to £23.6m (31 December 2024: £22.9m) due to final payments on
deferred consideration in relation to acquisitions and the funding of our
discontinued operation
· Finance costs reduced by 21% in H1 2025 compared to H1 2024, aided by
switching to Euribor based debt. This is protected by an interest rate swap on
circa 50% of the Group's borrowings
Operational review:
· Successful launch of Tom Tailor eyewear brand on 1 July 2025 with
initial sales ahead of target
· Operating efficiencies continue to be delivered, with a £1.1m
reduction in operating expenses within the Frames and Optics division in H1
2025 compared to H1 2024
· Norville, our lens manufacturing site, discontinued as rationalisation
across the Group continued
· Amalgamation of selected European sales businesses is on track to be
completed by the end of 2025
· Ongoing tariff disruption continues to affect our manufacturing
exports from China to the US
· Optics division in the USA affected by reduced government expenditure
on low vision owing to the changing political landscape
· Successful implementation of new ERP systems completed in our US and
UK businesses
Board update:
· Following a comprehensive recruitment process, Andrea Davis has been
selected to be the Company's next Non-Executive Chair with effect from no
later than 31 December 2025
Current trading and outlook:
· Current trading in the first two months of H2 is slightly behind plan,
however, the growth in our order books and increased cost savings are expected
to deliver a stronger performance in the remainder of the year. The Board,
therefore, has a reasonable expectation that the Group will meet its
guidance(6) for the full year
· We remain committed to delivering on our medium-term targets:
o CAGR organic revenue growth 40% above the market rate, which is currently
forecast to grow at 3% CAGR
o Double digit underlying EBITDA %
o Net debt to be 40% - 75% of Underlying EBITDA.
1 The results for the period ended 30 June 2024 have been
re-presented to reflect the classification of Norville as a discontinued
operation.
2 Constant currency exchange rates: figures at constant currency
exchange rates have been calculated using the average exchange rates in effect
for the relevant comparative period (H1 2024).
3 Refer to table 'Underlying EBITDA and Underlying PAT'.
4 Refer to note 5.
5 Refer to note 9.
6 Guidance is for Underlying EBITDA of £18.7m, excluding
Norville, for the year ending 31 December 2025.
Richard Peck, CEO of INSPECS, said: "As a global eyewear business, we have
experienced first-hand the widely reported macro-challenges, including ongoing
tariff disruption and subdued consumer confidence. As a result, Group sales in
the first half are slightly behind last year. Despite this, I am encouraged by
the achievements that have been within our control including the successful
amalgamation of our two US frame businesses, which has delivered increased
sales demonstrating what can be achieved from operational efficiencies within
the Group. We are undertaking further efficiency initiatives in the second
half of the year and look forward to updating the market on that progress.
"Based on the growth in our order books as at the end of August 2025 and
planned increased cost savings the Board has a reasonable expectation of
meeting full year guidance. We continue to believe in the fundamental
strengths of the business and the management team remains focused on the
delivery of our medium-term targets."
For further information please contact:
INSPECS Group plc via FTI Consulting
Richard Peck (CEO) Tel: +44 (0) 20 3727 1000
Chris Kay (CFO)
Peel Hunt (Nominated Adviser and Broker) Tel: +44 (0) 20 7418 8900
George Sellar
Andrew Clark
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727 1000
Alex Beagley
Harriet Jackson
Amy Goldup
About INSPECS Group plc
INSPECS is a leading provider of eyewear solutions to the global eyewear
market. The Group produces a broad range of eyewear frames and low vision
aids, covering optical, sunglasses and safety, which are either "Branded"
(under licence or under the Group's own proprietary brands), or "OEM"
(unbranded or private label on behalf of retail customers).
INSPECS is building a global eyewear business through its vertically
integrated business model. Its continued growth is underpinned by increasing
the penetration of its own-brand portfolio, worldwide distribution, growing
retail presence, maximising group synergies and its global network, expanding
its manufacturing capacity and scaling the research and development department
as it develops new and innovative eyewear products.
The Group has operations across the globe: with offices and subsidiaries in
the UK, Europe, the US and China (including Hong Kong, Macau and Shenzhen),
and manufacturing facilities in Vietnam, China, the UK and Italy.
INSPECS customers are global optical and non-optical retailers, global
distributors and independent opticians. Its distribution network covers over
80 countries and reaches approximately 75,000 points of sale.
More information is available at: www.INSPECS.com (http://www.INSPECS.com)
CHIEF EXECUTIVE REVIEW
As previously communicated, revenue and EBITDA in the first half of 2025 was
lower than initially expected largely as a result of slower trading in Europe
and the uncertainty stemming from US tariffs.
The Group delivered revenue of £97.6m (H1 2024: £100.6m) and Underlying
EBITDA of £9.0m (H1 2024: £11.0m). With our continued focus on delivering
operational efficiencies, we reduced operating expenses by £0.6m to £47.8m
(H1 2024: £48.4m) despite inflationary pressures.
We continue to prioritise achieving our medium-term targets of accelerated
revenue growth, operational strength and sustainable leverage through a number
of key areas of focus.
Frames and Optics
Revenue in our Frames and Optics distribution business fell by 3.0% to £91.4m
(H1 2024: £94.2m). Operational efficiency initiatives led to a £1.1m
reduction in operating expenses to £42.1m (H1 2024: £43.2m), which helped to
mitigate the impact of the revenue decline. As a result, Underlying EBITDA
decreased to £10.5m (H1 2024: £11.3m).
This period has been particularly challenging for our US low vision business.
Tariffs have increased product costs, prompting some customers to delay
purchasing decisions until there is greater certainty on tariff policy. At the
same time, several key customers have faced delays or reductions in government
funding due to the changing political landscape. These factors have
collectively slowed demand and disrupted our sales pipeline.
On a positive note, the amalgamation of our two US frame businesses, completed
in 2024, has been a notable success. The combined business has delivered
increased sales with lower operating expenses. In addition, our group
procurement activities have now covered 40%-50% of all new SKUs across some of
our subsidiaries, with purchase price improvements expected to yield improved
margins in 2026.
In Europe, frame and low vision optic sales continue to face headwinds, with
trading being slower than anticipated. However, we are pleased to report the
successful launch of our Tom Tailor eyewear collection. This collection was
launched in July 2025 and has shown promising sales to date. Additional brand
highlights include the launch of Gwen Stefani's L.A.M.B. brand via a
Direct-to-Consumer website, and our proprietary brand Titanflex and licensed
brand Marc O'Polo are continuing to perform well as a result of new
technologies and evolving fashion trends.
Further work on the amalgamation of our European sales businesses is on track
and expected to be completed by the end of 2025, with associated cost savings
expected to be delivered from Q4 2025.
Manufacturing
Revenue from the manufacturing business for H1 2025 was £7.9m, compared to
£9.0m in H1 2024. Gross profit margin decreased by 630 basis points to 39.9%
due to reduced factory throughput leading to a £1.2m reduction in Underlying
EBITDA to £0.4m (H1 2024: £1.6m).
Our Chinese factory has been heavily impacted by US tariffs, with a
considerable number of customers delaying orders whilst they wait for more
tariff certainty. We are pleased with the performance of our new Vietnam
factory which is operating well and scaling up. Although current sales levels
are not yet where we would like them to be, we are encouraged by the positive
momentum in our order pipeline (up by 3.9% for the business segment 31 August
2025 versus 31 August 2024), which supports our expectation of stronger sales
and margin performance in the second half of the year.
ESG
During the period, we made progress in electrifying our car fleet at
Eschenbach, helping to reduce fuel costs and emissions while supporting our
broader sustainability goals. At Neo, our Vietnam factory, we are installing
solar panels, expected to lower energy costs and enhance energy resilience. We
are pleased to report that our 2023 emissions data received external limited
assurance, providing a strong foundation for future carbon reduction. We've
also initiated packaging and Scope 3 projects to advance the use of
sustainable materials and strengthen our carbon management across the Group.
We remain committed to executing our ESG targets and driving measurable impact
for our people, planet, and communities.
Board update
After an extensive recruitment process, the Company has selected Andrea Davis
to be its next Non-Executive Chair. After a successful career as a Managing
Director and CFO, Andrea became an Operating Partner at Investcorp and has
acted as Director and Chair for many of its investee companies. She has been
chosen for her extensive experience in a wide range of industries and
geographies especially in consumer products across continental Europe,
recruiting management teams, running and supervising investments. It is
expected that Andrea will take up her new position by 31 December 2025.
Outlook
Despite ongoing macroeconomic headwinds, the optical market remains resilient.
We have continued to deliver additional operational efficiencies, of which we
will see further benefit in the second half of this year. Current trading in
the first two months of H2 is slightly behind expectations, however the growth
in our order books and manufacturing pipeline (up 3.3% 31 August 2025 versus
31 August 2024) is expected to result in stronger performance in the next four
months. We therefore have a reasonable expectation of meeting full year
guidance and reiterate our commitment to delivering on our medium-term
ambitions.
I would like to take this opportunity to thank all of our teams worldwide for
their continued efforts and commitment to growing INSPECS Group into a leading
name in global eyewear.
Richard Peck
18 September 2025
FINANCIAL REVIEW
Revenue
Revenue was £97.6m in the half, down from £100.6m in H1 2024, a decrease of
3.0%. On a constant exchange rate basis revenues decreased 1.3% to £99.3m
from £100.6m (H1 2024).
Gross Profit Margin
The Group's gross profit margin decreased to 51.8% in H1 2025 from 52.6% in H1
2024, driven by reduced sales from our Asian manufacturing businesses and
reduced sales from our low vision optics business.
Operating Profit
The Group's operating profit decreased to £2.7m (H1 2024: £4.5m).
Administrative expenses
Administrative costs decreased by £0.5m to £45.2m in H1 2025 from £45.7m in
H1 2024, a result of the Group's continuing focus on operational efficiency.
Underlying EBITDA
The Group's Underlying EBITDA decreased from £11.0m in H1 2024 to £9.0m in
H1 2025. Underlying EBITDA margin decreased from 11.0% in H1 2024 to 9.3% in
H1 2025.
Discontinued Operation
The Group's operating loss for the period from its discontinued operation was
£0.9m (H1 2024: £1.2m). The total loss for the period from discontinued
operations amounted to £4.9m (H1 2024: £1.3m) as a result of a £3.8m (H1
2024: £nil) remeasurement charge recognised on the valuation of the disposal
group at fair value less costs to sell.
Finance Expenses
Net finance costs have reduced from £1.9m in H1 2024 to £1.5m in H1 2025,
reflecting the lower Euribor interest rates charged on the Group's facilities
entered into in December 2024. Net finance costs include £0.1m (H1 2024:
£0.1m) relating to the amortisation of capitalised loan arrangement fees. In
July 2025, the Group entered into an interest rate swap to hedge a portion of
its loan balance, this mitigates the risk of interest rate rises over the loan
term.
Depreciation and amortisation
Period ended 30 June 2025 £m Period ended 30 June 2024
£m
Depreciation 2.8 2.7
Amortisation 3.3 3.2
Total 6.1 5.9
Profit Before Tax
Profit before tax for the period was £2.4m (H1 2024: £2.6m), after a £1.4m
gain on exchange relating to borrowings, compared to a gain of £0.1m in H1
2024.
Tax charge
The tax charge for the period of £2.1m (H1 2024: £2.4m) comprises a current
tax charge of £2.6m (H1 2024: £2.3m) and a deferred tax credit of £0.5m (H1
2024: £0.1m charge). The credit in H1 2025 is a result of the unwinding of
deferred tax balances arising on acquisitions.
Other comprehensive loss
The exchange adjustment loss on consolidation of £5.3m (H1 2024: £0.8m)
reflects the loss arising from the translation of our foreign operations.
During the period the loss in particular was driven by the strengthening of
the Pound against the US Dollar since the previous year end.
Cash Generation
The Group continued to have strong cash generation from operations of £11.2m
(H1 2024: £12.5m).
Net Debt
Net debt (excluding leases) increased by £0.7m to £23.6m as at 30 June 2025
(31 December 2024: £22.9m). During the period, the Group invested £1.1m on
the purchase of tangible and intangible owned assets and paid a further £0.7m
of deferred consideration relating to the EGO acquisition.
Financing
The Group finances its operation through the following borrowings and
facilities.
Expires Balance at Balance at
30 June 2025
31 December 2024
£m
£m
Group revolving credit facility December 2027 29.1 28.2
Term loans December 2027 9.0 9.9
Revolving credit facility USA 1-year rolling 6.7 7.5
Invoice discounting 1-year rolling 2.0 1.7
Total 46.8 47.3
Leverage (using debt to equity ratio)
The Group's leverage position is shown below:
30 June
2025
Actual ratio 1.63
Covenant ratio 2.25
The Group remains within its banking covenants and forecasts that it will
continue to remain within banking covenants for the length of the arrangement.
Inventory
Our revenue to inventory ratio has remained fairly consistent compared to 30
June 2024.
Period ended 30 June 2025 Period ended 30 June 2024
£m £m
Revenue 97.6 100.6
Inventory 40.6 39.7
Revenue to inventory ratio 2.4 2.5
Current asset ratio
The current ratio is a liquidity ratio that measures a company's ability to
pay short-term obligations, or those due within one year. This has remained
consistent on the comparative period.
Period ended 30 June 2025 Period ended 30 June 2024
£m £m
Current Assets 97.8 97.3
Current Liabilities 67.4 67.3
Ratio 1.5 1.4
Quick ratio
The quick ratio is an indicator of a company's short-term liquidity position
and measures a company's ability to meet its short-term obligations with its
most liquid assets. This has remained consistent on the comparative period.
Period ended 30 June 2025 Period ended 30 June 2024
£m £m
Current Assets 97.8 97.3
Less Inventory (40.6) (39.7)
57.2 57.6
Current Liabilities 67.4 67.3
Ratio 0.8 0.9
Net working capital
Period ended 30 June 2025 Period ended 30 June 2024 Period ended 30 December 2024
£m £m £m
Trade and other receivables 34.4 33.0 39.8
Inventory 40.6 39.7 42.8
Trade and other payables (36.9) (35.5) (41.3)
Net working capital 38.1 37.2 41.3
Working capital as a percentage of 12 month rolling revenue 20.0% 19.5% 21.3%
Earnings per Share
The Group's Diluted Underlying EPS for the 6 months to 30 June 2025 was 2.08p
compared to 3.94p for the 6 months to 30 June 2024. The Group's Diluted EPS
was a loss of 4.54p for the 6 months to 30 June 2025 (H1 2024: loss 1.01p)
Dividend
The Group does not currently intend to pay a dividend in relation to 2025. The
Board continues to review its dividend policy on a regular basis.
Underlying EBITDA and Underlying PAT
The below table shows how Underlying EBITDA and Underlying PAT are calculated:
6 months ended 30 June 2025 6 months ended 30 June 2024 (Re-presented(1)) 12 months ended 31 December 2024 (Re-presented(1))
£'000 £'000 £'000
Revenue 97,623 100,606 193,345
Gross Profit 50,570 52,947 101,382
Operating expenses (47,834) (48,435) (95,479)
Operating profit 2,736 4,512 5,903
Add back: Amortisation 3,270 3,212 6,785
Add back: Depreciation 2,758 2,707 5,465
EBITDA 8,764 10,431 18,153
Add back: Share based payment expense 371
277 206
Add back: Earn out on acquisition - 380 981
Underlying EBITDA 9,041 11,017 19,505
Less: Depreciation (2,758) (2,707) (5,465)
Less: Net interest (excluding amortisation of loan arrangement fees) (3,562)
(1,433) (1,868)
Underlying Profit Before Tax (PBT) 4,850 6,442 10,478
Current tax charge (2,627) (2,233) (4,176)
Underlying Profit After Tax (PAT) 2,223 4,209 6,302
Underlying EPS Pence Pence Pence
Basic Underlying EPS for the period attributable to the equity holders of the
parent
2.19 4.14 6.20
Diluted Underlying EPS for the period attributable to the equity holders of
the parent
2.08 3.94 5.90
((1) The results for the periods ending 30 June 2024 and 31 December 2024
have been re-presented to reflect the classification of Norville as a
discontinued operation.)
Underlying EBITDA segmental information
Underlying EBITDA by reportable segment for the six months ended 30 June 2025
is as follows:
Frames & Manufacturing Total before Adjustments Total
Optics adjustments & & eliminations
eliminations
£'000 £'000 £'000 £'000 £'000
Revenue 91,398 7,869 99,267 (1,644) 97,623
Operating profit/(loss) 5,117 (410) 4,707 (1,971) 2,736
Add back:
Amortisation 2,957 313 3,270 - 3,270
Depreciation 2,297 413 2,710 48 2,758
Share based payments 96 57 153 124 277
Underlying EBITDA 10,467 373 10,840 (1,799) 9,041
Underlying EBITDA by reportable segment for the six months ended 30 June 2024
is as follows:
Frames & Manufacturing Total before Adjustments Total
Optics adjustments & & eliminations
eliminations
(Re-presented(1)) (Re-presented(1)) (Re-presented(1))
£'000 £'000 £'000 £'000 £'000
Revenue 94,169 9,028 103,197 (2,591) 100,606
Operating profit/(loss) 5,586 1,222 6,808 (2,296) 4,512
Add back:
Amortisation 2,897 43 2,940 272 3,212
Depreciation 2,374 250 2,624 83 2,707
Share based payments 39 90 129 77 206
Earn out on acquisitions 380 - 380 - 380
Underlying EBITDA 11,276 1,605 12,881 (1,864) 11,017
((1) The results for the period ended 30 June 2024 have been re-presented to
reflect the classification of Norville as a discontinued operation.)
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the
period ended 30 June 2025
Notes Unaudited Unaudited
6 months ended 6 months ended
30 June 2025
30 June 2024
(Re-presented(1))
£'000 £'000
REVENUE 4 97,623 100,606
Cost of sales (47,053) (47,659)
GROSS PROFIT 50,570 52,947
Distribution costs (2,656) (2,777)
Administrative expenses (45,178) (45,658)
OPERATING PROFIT 2,736 4,512
Non-underlying costs (247) (94)
Exchange adjustments on borrowings 1,399 155
Share of profit/(loss) of associates 6 (2)
Finance costs (1,612) (2,027)
Finance income 72 94
PROFIT BEFORE INCOME TAX 2,354 2,638
Income tax (2,087) (2,350)
PROFIT FOR THE PERIOD - CONTINUING OPERATIONS 267 288
12 (4,879) (1,315)
LOSS FOR THE PERIOD - DISCONTINUED OPERATION
(4,612) (1,027)
LOSS FOR THE PERIOD
OTHER COMPREHENSIVE LOSS:
Exchange adjustment on consolidation (5,250) (756)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (9,862) (1,783)
((1) The results for the period ended 30 June 2024 have been re-presented to
reflect the classification of Norville as a discontinued operation.)
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)
For the period ended 30 June 2025
Notes Unaudited Unaudited
6 months ended 6 months ended
30 June 2025
30 June 2024
(Re-presented(1))
Profit per share from continuing operations Pence Pence
Basic EPS for the period attributable 5 0.26 0.28
to the equity holders of the parent
Diluted EPS for the period attributable 5 0.25 0.27
to the equity holders of the parent
Loss per share
Basic EPS for the period attributable 5 (4.54) (1.01)
to the equity holders of the parent
Diluted EPS for the period attributable 5 (4.54) (1.01)
to the equity holders of the parent
((1) The results for the period ended 30 June 2024 have been re-presented to
reflect the classification of Norville as a discontinued operation.)
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
Note Unaudited Unaudited As at
31 December 2024
As at As at
30 June 2025
30 June 2024 £'000
£'000 £'000
ASSETS
NON-CURRENT ASSETS
Goodwill 55,741 55,743 55,741
Intangible assets 20,504 26,930 23,406
Property, plant and equipment 25,310 34,718 32,648
Investment in associates 70 97 70
Deferred tax 1,993 2,576 1,738
103,618 120,064 113,603
CURRENT ASSETS
Inventories 40,576 39,679 42,753
Trade and other receivables 6 34,397 32,974 39,825
Tax receivable 184 74 107
Cash and cash equivalents 7 22,667 24,616 23,960
97,824 97,343 106,645
Assets held for sale 12 2,392 832 -
TOTAL ASSETS 203,834 218,239 220,248
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 1,017 1,017 1,017
Share premium 89,508 89,508 89,508
Foreign currency translation reserve (409) 4,679 4,841
Share option reserve 3,847 3,428 3,570
Merger reserve 5,340 5,340 5,340
Accumulated losses (10,202) (2,032) (5,590)
TOTAL EQUITY 89,101 101,940 98,686
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Interest bearing loans and borrowings 43,902 45,605 44,505
Deferred tax 1,673 3,427 1,968
45,575 49,032 46,473
CURRENT LIABILITIES
Trade and other payables 8 36,923 35,463 41,269
Right of return liability 10,527 11,222 10,608
Financial liabilities - borrowings
Interest bearing loans and borrowings 12,725 14,276 16,185
Invoice discounting 2,012 1,804 1,777
Deferred and contingent consideration 991 1,231 1,873
Tax payable 4,237 3,271 3,377
67,415 67,267 75,089
Liabilities held for sale 12 1,743 - -
TOTAL LIABILITIES 114,733 116,299 121,562
TOTAL EQUITY AND LIABILITIES 203,834 218,239 220,248
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2025
Called up share capital Share premium Foreign currency translation reserve Share option reserve Accumulated losses Merger reserve Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
SIX MONTHS ENDED 30 JUNE 2025
Balance at 1 January 2025 1,017 89,508 4,841 3,570 (5,590) 5,340 98,686
Loss for the period - - - - (4,612) - (4,612)
Other comprehensive loss - - (5,250) - - - (5,250)
Total comprehensive loss - - (5,250) - (4,612) - (9,862)
Share-based payment charge - - - 277 - - 277
Balance at 30 June 2025 (unaudited) 1,017 89,508 (409) 3,847 (10,202) 5,340 89,101
SIX MONTHS ENDED 30 JUNE 2024
Balance at 1 January 2024 1,017 89,508 5,435 3,222 (1,005) 5,340 103,517
Loss for the period - - - - (1,027) - (1,027)
Other comprehensive loss - - (756) - - - (756)
Total comprehensive loss - - (756) - (1,027) - (1,783)
Share-based payment charge - - - 206 - - 206
Balance at 30 June 2024 (unaudited) 1,017 89,508 4,679 3,428 (2,032) 5,340 101,940
INTERIM CONSOLIDATED STATEMENT OF CASH
FLOW
For the period ended 30 June 2025
Note Unaudited Unaudited
6 months ended 6 months ended
30 June 2025 30 June 2024
(Re-presented(1))
£000 £000
Cash flows from operating activities
Profit before income tax 2,354 2,638
Adjustments for:
Depreciation charges 2,758 2,707
Amortisation charges 3,270 3,212
Share based payments 277 206
Exchange adjustments on borrowings (1,399) (155)
Share of (profit)/loss from associate (6) 2
Finance costs 1,612 2,027
Finance income (72) (94)
8,794 10,543
Decrease in inventories(2) 529 1,233
Decrease in trade and other receivables(2) 4,332 3,221
Decrease in trade and other payables(2) (2,424) (2,464)
Cash generated from operations 11,231 12,533
Interest paid (1,576) (1,962)
Tax paid (1,852) (783)
Cash outflows from discontinued operations (1,586) (623)
Net cash flow from operating activities 6,217 9,165
Cash flows used in investing activities
Purchase of intangible fixed assets (504) (631)
Purchase of property plant and equipment (563) (868)
Acquisition of subsidiary, net of cash acquired - (129)
Cash paid in relation to deferred consideration (700) (700)
Interest received 72 94
Cash inflows/(outflows) from discontinued operations 265 (338)
Net cash flows used in investing activities (1,430) (2,572)
Cash flow from financing activities
Bank loan principal repayments in period (1,474) (1,712)
Proceeds from borrowings - 1,265
Movement in invoice discounting facility 235 917
Loan transaction costs (568) (224)
Principal payments on leases (1,755) (1,849)
Net cash flows used in financing activities (3,562) (1,603)
Net increase in cash and cash equivalents 1,225 4,990
Cash and cash equivalents at beginning of the period 23,960 20,070
Net foreign currency movements (2,361) (444)
Cash and cash equivalents at end of period 7 22,824 24,616
( )
((1) The cashflows for the period ended 30 June 2024 have been re-presented
to reflect the classification of Norville as a discontinued operation.)
((2) The movement in working capital excludes the classification of the
discontinued operations working capital as held for sale.)
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS
For the period ended 30 June 2025
1. GENERAL INFORMATION
INSPECS Group plc is a public company limited by shares and is incorporated in
England and Wales. The address of the Company's principal place of business is
Kelso Place, Upper Bristol Road, Bath BA1 3AU.
The principal activity of the Group in the period was that of design,
production, sale, marketing and distribution of high fashion eyewear and OEM
products worldwide.
2. ACCOUNTING POLICIES
Going concern
Based on the Group's forecasts, the interim financial statements have been
prepared on the going concern basis as the Directors have assessed that there
is a reasonable expectation that the Group will be able to continue in
operation and meet its commitments as they fall due over the going concern
period to 30 September 2026.
The assessment has considered the Group's current financial position as
follows:
• The Group further improved its cash position during the period with
net debt including leases decreasing to £36.0m from £38.5m at 31 December
2024.
• Cash generated from operations in the period amounted to £11.2m
(2024 H1: £12.5m).
• The Group balance sheet has net assets of £89.1m and net
current assets of £30.4m.
The assessment has considered the current measures being put in place by the
Group to preserve cash and ensure continuity of operations through:
• Ensuring continuation of its supply chain, building on the
benefit of having its own manufacturing sites and by securing alternative
third-party supply lines.
• Maintaining geographical sales diversification, focusing sales
to online customers and seeking new revenue streams around the globe.
• Ability to service both the major global retail chains and
significant distribution to the independent eyewear market.
• Following the announcement of the intended sale of Norville, we
have strengthened our forward-looking position, reinforcing confidence in the
Group's ability to continue as a going concern.
Basis of preparation
The interim consolidated financial statements for the six months ended 30 June
2025 have been prepared in accordance with IAS 34 Interim Financial Reporting
and with accounting policies that are consistent with the Group's Annual
Report and Financial Statements for the period ended 31 December 2024.
Accounting policies are included in detail within the latest Annual Report.
The financial information for the period ended 30 June 2025 and the
comparative financial information for the period ended 30 June 2024 in this
interim report does not constitute statutory accounts for either period under
section 434 of the Companies Act 2006 and are unaudited.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
The preparation of the Group's historical information requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and their accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that could require a
material adjustment to the carrying amounts of the assets or liabilities in
the future.
Estimation uncertainty
In addition to the going concern section of note 2, the key assumptions
concerning the future and other key sources of estimation uncertainty at the
end of the reporting period, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial period, are described below.
Right of return liability
Management applies assumptions in determining the right of return liability
and the associated right of return asset. These assumptions are based on
analysis of historical data trends but require estimation of appropriate time
periods and expected return rates. The right of return liability at the period
end is £10,527,000 (31 December 2024: £10,608,000) in line with the
calculation methodology used as at 31 December 2024.
Discontinued Operations
Management applies judgement in the classification of the Norville (20/20)
Limited business as a disposal group held for sale and as a discontinued
operation. This judgement is based on management's assessment that it is
highly probable that a sale of the disposal group is expected to occur, with
active marketing of the business ongoing. Management is also required to
estimate the fair value less costs to sell of the disposal group which as at
period end was £423,000 and resulted in a remeasurement charge of
£3,765,000. This estimate involves inherent uncertainty, and management has
relied on preliminary discussions held with third parties in making its
estimate.
4. SEGMENT INFORMATION
During the current period, the previously reported Lenses segment, which
consisted entirely of Norville (20/20) Limited, has been classified as
a discontinued operation and is therefore excluded from the segmental
analysis presented below.
The Group now operates in seven operating segments, which upon application of
the aggregation criteria set out in IFRS 8 Operating Segments results in two
reporting segments:
• Frames and Optics product distribution.
• Manufacturing - being OEM and manufacturing distribution.
The criteria applied to identify the operating segments are consistent with
the way the Group is managed. In particular, the disclosures are consistent
with the information regularly reviewed by the CEO and the CFO in their role
as Chief Operating Decision Makers, to make decisions about resources to be
allocated to the segments and to assess their performance. Segment asset and
liability information is not provided to the Chief Operating Decision Makers.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
4. SEGMENT INFORMATION (CONTINUED)
The reportable segments subject to disclosure are consistent with the
organisation model adopted by the Group during the six months ended 30 June
2025 are as below:
Frames and Manufacturing Total before Adjustments Total
Optics adjustments & & eliminations
eliminations
£'000 £'000 £'000 £'000 £'000
Revenue
External 90,404 7,177 97,581 42 97,623
Internal 994 692 1,686 (1,686) -
91,398 7,869 99,267 (1,644) 97,623
Cost of sales (44,145) (4,727) (48,872) 1,819 (47,053)
Gross profit 47,253 3,142 50,395 175 50,570
Expenses (42,136) (3,552) (45,688) (2,146) (47,834)
Operating profit/(loss) 5,117 (410) 4,707 (1,971) 2,736
Non-underlying costs (247)
Exchange adjustment 1,399
on borrowings
Share of profit of associates 6
Finance costs (1,612)
Finance income 72
Taxation (2,087)
Profit for the period - continuing operations 267
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
4. SEGMENT INFORMATION (CONTINUED)
The reportable segments subject to disclosure are consistent with the
organisation model adopted by the Group during the six months ended 30 June
2024 are as below:
Frames and Manufacturing Total before Adjustments Total
Optics adjustments & & eliminations
eliminations
£'000 £'000 £'000 £'000 £'000
(Re-presented) (Re-presented) (Re-presented)
Revenue
External 92,009 8,453 100,462 144 100,606
Internal 2,160 575 2,735 (2,735) -
94,169 9,028 103,197 (2,591) 100,606
Cost of sales (45,379) (4,859) (50,238) 2,579 (47,659)
Gross profit/(loss) 48,790 4,169 52,959 (12) 52,947
Expenses (43,204) (2,947) (46,151) (2,284) (48,435)
Operating profit/(loss) 5,586 1,222 6,808 (2,296) 4,512
Non-underlying costs (94)
Exchange adjustment 155
on borrowings
Share of loss of associates (2)
Finance costs (2,027)
Finance income 94
Taxation (2,350)
Profit for the period - continuing operations 288
Non-underlying costs, finance costs and income, and taxation are not allocated
to individual segments as the underlying instruments are managed on a Group
basis.
Adjusted items relate to elimination of all intra-Group items including any
profit adjustments on intra-Group revenues that are eliminated on
consolidation, along with the profit and loss items of the parent company.
The revenue of the Group is attributable to the one principal activity of the
Group.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
4. SEGMENT INFORMATION (continued)
Geographical analysis
The Group's revenue by destination is split in the following geographic areas:
Unaudited Unaudited
6 months ended 6 months ended
30 June 2025 30 June 2024
(Re-presented)
£'000 £'000
United Kingdom 10,001 10,673
Europe (excluding UK) 46,120 48,424
North America 35,780 35,358
South America 1,113 822
Asia 2,045 1,830
Australia 2,403 3,342
Other 161 157
97,623 100,606
5. EARNINGS PER SHARE
Basic Earnings per Share ("EPS") is calculated by dividing the profit or loss
for the period attributable to ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit or loss attributable to
ordinary equity holders of the parent by the weighted average number of
ordinary shares outstanding during the period plus the weighted average number
of ordinary shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares, to the extent that the
inclusion of such shares is not anti-dilutive. During the period to 30 June
2025 the Group made a reported loss for the period; therefore, diluted EPS is
not applicable as the impact of potential ordinary shares is anti-dilutive.
Reported Basic earnings per share is (4.54)p (30 June 2024: (1.01)p), with
reporting diluted earnings per share of (4.54)p (30 June 2024: (1.01p). The
below table reflects the income and share data used in the basic and diluted
EPS calculations. Earnings for the Underlying EPS are the 'Underlying Profit
After Tax' as shown in the table 'Underlying EBITDA and Underlying PAT'.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
5. EARNINGS PER SHARE (continued)
6 months ended 30 June 2025 Basic weighted average number of Ordinary Shares ('000) Total Earnings per share (pence)
Earnings
(Re-presented) (£'000)
Basic EPS 101,672 (4,612) (4.54)
Diluted EPS 101,672 (4,612) (4.54)
Basic EPS from continuing operations 101,672 267 0.26
Diluted EPS from continuing operations 107,058 267 0.25
Basic Underlying EPS 101,672 2,223 2.19
Diluted Underlying EPS 107,058 2,223 2.08
6 months ended 30 June 2024 Basic weighted average number of Ordinary Shares ('000) Total Earnings per share (pence)
earnings
(Re-presented) (£'000)
Basic EPS 101,672 (1,027) (1.01)
Diluted EPS 101,672 (1,027) (1.01)
Basic EPS from continuing operations 101,672 288 0.28
Diluted EPS from continuing operations 106,824 288 0.27
Basic Underlying EPS 101,672 4,209 4.14
Diluted Underlying EPS 106,824 4,209 3.94
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
5. EARNINGS PER SHARE (continued)
12 months ended 31 December 2024 Basic weighted average number of Ordinary Shares ('000) Total Earnings per share (pence)
earnings
(Re-presented) (£'000)
Basic EPS 101,672 (4,608) (4.53)
Diluted EPS 101,672 (4,608) (4.53)
Basic EPS from continuing operations 101,672 (2,018) (1.98)
Diluted EPS from continuing operations 101,672 (2,018) (1.98)
Basic Underlying EPS 101,672 6,302 6.20
Diluted Underlying EPS 106,824 6,302 5.90
Within INSPECS Group plc, each Ordinary share carries the right to participate
in distributions, as respects dividends and as respects capital on winding up.
6. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited As at
As at As at 31 December
30 June 2025 30 June 2024 2024
£'000 £'000 £'000
Trade receivables 25,286 24,717 28,297
Prepayments 3,347 1,984 3,154
Other receivables 5,764 6,273 8,374
34,397 32,974 39,825
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
7. Cash and cash equivalents
Unaudited Unaudited As at
31 December
2024
As at As at
30 June 2025 30 June 2024
£'000 £'000 £'000
As presented in the consolidated statement of financial position 22,667 24,616 23,960
Cash and cash equivalents of discontinued operation 157 - -
As presented in the consolidated statement of cash flows
22,824 24,616 23,960
8. TRADE AND OTHER PAYABLES
Unaudited Unaudited As at
31 December
2024
As at As at
30 June 2025 30 June 2024
£'000 £'000 £'000
Trade payables 21,087 22,901 25,994
Social security and other taxes 3,092 3,143 2,862
Royalties 2,127 2,669 2,974
Accruals 10,617 6,750 9,439
36,923 35,463 41,269
9. NET DEBT
Unaudited Unaudited As at
31 December
2024
As at As at
30 June 2025 30 June 2024
£'000 £'000 £'000
Cash and cash equivalents 22,667 24,616 23,960
Interest bearing borrowings excl. leases
(44,213) (42,628) (45,059)
Invoice discounting (2,012) (1,804) (1,777)
Net debt excluding leases (23,558) (19,816) (22,876)
Lease liability (12,414) (17,253) (15,631)
Net debt including leases (35,972) (37,069) (38,507)
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
10. NON-UNDERLYING COSTS
Non-underlying costs during the six months to 30 June 2025 relate to legal
costs incurred in relation to the defence of a requisition for a general
meeting (£137,000) and the amalgamation of European subsidiaries (£110,000).
11. SHARE-BASED PAYMENTS
Certain employees of the Group are granted options over the shares in INSPECS
Group. The options are granted with a fixed exercise price. Options granted on
4 June 2025 are also subject to a performance condition in relation to the
growth of Underlying EPS during the vesting period.
The Group recognises a share-based payment expense based on the fair value of
the awards granted, and an equivalent credit directly in equity to share
option reserve. On exercise of the shares by the employees, the Group is
charged the intrinsic value of the shares by INSPECS Group plc and this amount
is treated as a reduction of the capital contribution, and it is recognised
directly in equity.
Share options outstanding at the end of the period have the following expiry
dates and exercise prices:
Grant date Vesting date Expiry date Exercise price per option (£) Number of share options
10 December 2019 1 July 2022 10 December 2026 1.01 412,102
27 February 2020 27 February 2023 27 February 2030 1.95 1,923,110
22 December 2020 22 December 2023 22 December 2030 2.10 890,000
26 February 2021 26 February 2024 26 February 2031 3.25 641,036
21 June 2021 21 June 2024 21 June 2031 3.51 60,000
31 August 2021 31 August 2024 31 August 2031 3.70 275,000
23 December 2021 23 December 2024 23 December 2031 3.70 279,999
28 February 2022 26 February 2025 28 February 2032 3.75 641,036
4 June 2025 1 May 2026 1 May 2031 0.01 250,000
4 June 2025 1 May 2027 1 May 2032 0.01 1,410,000
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
12. DISCONTINUED OPERATIONS
As at 30 June 2025, Norville (20/20) Limited was classified as a disposal
group held for sale and a discontinued operation. The Group has engaged
Deloitte to support efforts to sell the business or assist with implementing
alternative outcomes should a sale not be possible. The business is the sole
entity within the lenses reporting segment.
The assets and liabilities of the disposal group have been classified as held
for sale at fair value less costs to sell with a value of £423,000. The fair
value of the disposal group represents the Group's best estimate based on
information held to date. This resulted in a remeasurement charge of
£3,765,000. This remeasurement charge has been allocated to property, plant
and equipment (£2,652,000), intangible assets (£40,000), trade and other
receivables (£583,000) and inventories (£490,000).
One property, which is not part of the disposal group but is still being
actively marketed, has been separately classified as an asset held for sale at
a value of £226,000. It has been measured at the lower of its carrying amount
and fair value less costs to sell.
The operating profit of the discontinued operation, along with the profit or
loss arising from remeasurement of assets and liabilities classified as held
for sale, is shown below:
Unaudited Unaudited
6 months ended 6 months ended
30 June 2025
30 June 2024
£'000 £'000
REVENUE 2,405 2,441
Cost of sales (1,622) (1,376)
GROSS PROFIT 783 1,065
Distribution costs (159) (167)
Administrative expenses (1,563) (2,094)
OPERATING LOSS (939) (1,196)
Non-underlying costs (56) -
Finance Costs (119) (119)
LOSS FOR THE PERIOD (1,114) (1,315)
Loss on the remeasurement of disposal group (3,765) -
LOSS FOR THE PERIOD - DISCONTINUED OPERATION (4,879) (1,315)
Loss per share for discontinued operations Pence Pence
Basic EPS for the period attributable to the equity holders of the parent (4.80) (1.29)
Diluted EPS for the period attributable to the equity holders of the (4.80) (1.29)
parent
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2025
12. DISCONTINUED OPERATIONS (continued)
The carrying amounts of assets and liabilities held for sale are summarised as
follows:
Unaudited Unaudited
As at 30 June 2025 As at 30 June 2024
£'000 £'000
Property, plant and equipment 226 832
Inventories 918 -
Trade and other receivables 1,091 -
Cash and cash equivalents 157 -
Assets held for sale 2,392 832
Financial liabilities - borrowings 246 -
Trade and other payables 1,478 -
Right of return liability 19 -
Liabilities held for sale 1,743 -
A reconciliation between the Group's continuing results and it's like-for-like
results (i.e. including Norville) for the 6 months ending 30 June 2025 is show
below.
Total Discontinued Total
(Continuing) Operation (Like for like)
£'000 £'000 £'000
Revenue 97,623 2,405 100,028
Operating profit/(loss) 2,736 (939) 1,797
Add back:
Amortisation 3,270 11 3,281
Depreciation 2,758 278 3,036
Share based payments 277 - 277
Underlying EBITDA 9,041 (650) 8,391
13. POST BALANCE SHEET EVENTS
Since the end of the interim period on 30 June 2025 there were no material
events that the directors consider material to the users of these interim
statements.
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